Dodge,
It doesn't matter how commercial arrangements are 'spun' to look appealing. Glib phrases such as 'cost plus', 'revenue offsets', damp lease, wet lease, etc. The devil is always in the legal detail of the agreements and someone always is obliged to pay the price and cost differences. That's business!
If Qantaslink act to protect their market share against any competitor by supplementing their offer through FF enhancements, discounts, increased or adjusted frequency, or whatever other means and the new entrant is denied sufficient customers and therefore is unable to cover their operating costs, someone will have to reach into their pocket to cover the shortfall.
Virgin lost $80Mill last year, which is why they have invited a third party to take this risk, rather than doing it themselves.
The Oracle